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Rachel Reeves faced humiliation last night after she backtracked over her illegal letting blunder.

There were growing calls for the Chancellor to be sacked following an extraordinary day of contradictory statements.

The Daily Mail exclusively revealed on Wednesday night that since entering Downing Street the Chancellor had been letting her family home without a licence. Ms Reeves had claimed that she and her husband, Nicholas Joicey, were unaware that they needed to secure a ‘selective’ rental licence.

But emails released by No 10 last night revealed extensive conversations between Mr Joicey and their letting agent in which they were informed of the need for a licence. Ms Reeves conceded in a letter to the Prime Minister yesterday that she accepted it was her responsibility to secure the licence.

She said: ‘Today the letting agency and my husband have found correspondence confirming that on 17th July, 2024, the letting agent said to my husband that a Selective Licence would be required and agreed that the agency would apply for the licence on our behalf.

‘They have also confirmed today they did not take the application forward, in part due to a member of staff leaving.

‘Nevertheless, as I said yesterday, I accept it was our responsibility to secure the licence. I also take responsibility for not finding this information yesterday and bringing it to your attention.’

Her contradictory claims led to fresh calls for ethics chief Sir Laurie Magnus to investigate.

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Rachel Reeves, pictured with husband Nicholas Joicey, was on the ropes with calls for her to be sacked following an extraordinary day of contradictory statements

The Daily Mail exclusively revealed on Wednesday night that the Chancellor had been renting out her family home (pictured) without a licence since entering Downing Street

Meanwhile, the letting agency involved in Ms Reeves’ rental arrangements for her family home in Dulwich, south London, attempted to shoulder blame for the ‘oversight’.

The Mail sets the agenda

The Daily Mail has led the way on exposing Labour’s rank hypocrisy with a series of top scoops this week.

Last weekend Mail on Sunday readers were the first to learn that Rachel Reeves is plotting to hit homeowners with a mansion tax costing thousands of pounds a year at next month’s Budget.

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And then yesterday the Daily Mail exposed how the Chancellor has broken the law by letting her family home in south London without a licence since she entered Downing Street.

Both stories have led the news agenda and left rival publications in the Daily Mail’s wake as they have rushed to catch up.

Meanwhile Ms Reeves has been left reeling, just weeks out from her Budget on November 26, which could see her become the first Chancellor to raise the basic rate of income tax since the 1970s.

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Harvey & Wheeler said the property manager responsible for applying for the licence on her behalf had ‘suddenly resigned’ before the tenancy began.

But the firm added that they ‘do not normally apply for licences on behalf of our clients; the onus is on them to apply’. Tory leader Kemi Badenoch said last night that it was still Ms Reeves’ ‘duty’ to ‘make sure that something has been followed’.

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And she told the Daily Mail: ‘In Opposition, Keir Starmer was always first out of the blocks calling for Conservatives to be sacked. Now he’s ignoring the evidence that Rachel Reeves broke the law, because his flagging Government can’t handle a third resignation in as many months.

‘As always with Labour, it’s one rule for them, and another for the rest of us. This weak Prime Minister needs to stop the cover-up, order a proper investigation into Reeves, and have the backbone to accept that if it shows she’s broken the law, she has to go.’

Last night, Sir Laurie, the PM’s independent adviser on ministerial standards, said it was ‘regrettable’ that Ms Reeves had not obtained the licence.

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He concluded that the Chancellor had committed an ‘unfortunate but inadvertent error’ but found ‘no evidence of bad faith’.

He said Ms Reeves’ husband ‘did not recall’ the exchange regarding the licence when the couple initially assured him they had not been aware of the need for one.

In a letter to the Chancellor, Sir Keir Starmer last night made a pointed comment about her assurance on Wednesday night that she was unaware of the need for a licence.

Reeves is pictured smiling as she leaves Downing Street on Thursday 

Tory leader Kemi Badenoch said that it was still Ms Reeves’ ‘duty’ to ‘make sure that something has been followed’

He wrote: ‘It would clearly have been better if you and your husband had conducted a full trawl through all email correspondence with the estate agency before writing to me yesterday.’

But he said he regarded the case as an ‘inadvertent failure’ and said he saw no need for further action.

Last night, No 10 said Sir Keir retains ‘full confidence’ in Ms Reeves, and said she would deliver the Budget on November 26.

When the Daily Mail broke the story, Sir Laurie had said her failure to secure the correct licence did not warrant further investigation. But No 10 refused to say what evidence Ms Reeves had provided to Sir Laurie to back up her claim that she had not been made aware of the licensing requirement.

Downing Street also repeatedly refused to say whether the Chancellor’s actions were in breach of the Ministerial Code.

Ms Reeves failed to obtain a landlord licence when she put her property on the rental market last year as she moved into 11 Downing Street. The four-bedroom detached house was listed for rent at £3,200 a month, and her register of interests states she has received rental income since September 2024.

Southwark Council, the local authority, requires that private landlords in certain areas – including the one where Ms Reeves’ house is located – obtain a ‘selective’ licence to let their property. But the Chancellor failed to do so – and hastily applied for a licence after the Daily Mail’s inquiries.

Ms Reeves said it was an ‘inadvertent mistake’, and she apologised to the Prime Minister for the error.

Earlier yesterday a spokesman for the Prime Minister said: ‘She’s explained it was inadvertent mistake and as soon as it was brought to her attention, she took immediate action and applied for the licence… the Ministerial Code makes clear that in certain circumstances, in consultation with the independent adviser, an apology is a sufficient resolution.’

Asked whether the Prime Minister, a former director of public prosecutions, believed that ignorance of the law was a defence, the No 10 spokesman indicated he did not.

Pictured: An article from the Mail on Sunday on October 26

Pictured: An article published by the Daily Mail on October 30

In a second letter to the Prime Minister in the space of 24 hours, the Chancellor wrote to ‘update’ Sir Keir Starmer over the blunder that has plunged her into jeopardy

But he rejected suggestions that the Chancellor had got away ‘scot-free’ after a ‘stitch-up’ between Sir Laurie and the Prime Minister.

Southwark Council requires private landlords in certain areas to obtain a ‘selective’ licence. This has applied to most private residential properties rented to single families or unrelated tenants in the borough since November 2023.

It costs £900 and landlords must submit documents proving their property is fit for purpose, such as gas and electrical certificates.

Failing to obtain a licence is a criminal offence and can be punishable with an unlimited fine on prosecution, a fine of £30,000 as an alternative to prosecution, or the landlord could be ordered to pay back up to 12 months’ rent.